ES council takes step toward higher water rates

The Eureka Springs City Council has taken the first step in implementing a 25 percent increase in the water portion of utility bills, a move city officials say is unavoidable because of higher prices charged by the city’s supplier.

At its regular meeting Monday, June 26 at The Auditorium, the council voted 5-1 to approve the first reading of an ordinance that will increase water rates for residential and business customers. A proposed ordinance has to be read and approved three times before taking affect.

“What we’re asking for in the water rates is that Carroll-Boone has raised their water rates twice for us and we have not raised the water rates for the citizens,” said Michael Akins, the city finance director. “We’re asking to raise the water rates just on the water, not on sewer or anything else. Just the water that is metered that goes to your house.”

Akins told council members that the city has waited for the proposed increase for a couple of years.

“We absorbed a rate increase in 2022 that we did not pass along and then we had a rate increase in 2023 that we did not pass along,” he said. “We absorbed those costs because we knew everybody was coming off of COVID and we knew that wasn’t the time to raise the rates.

“We were trying to do everything we could for the citizens so we waited on raising the rates. … And now we’re trying to just level it out to where these increases are what we have been increased on, what we’re paying for the water.”

Council member Autumn Slane cast the lone dissenting vote, suggesting the city implement a smaller increase for now to help people adjust to paying more, while also developing a more concrete plan to address unknown leaks that are increasing the city’s expenses for water.

“I do have to agree that it is bad timing right now,” Slane said. “Everybody is struggling to just do what they’re already doing. I do agree that we need a plan, a solid plan.

“This is a start, and this is the beginning, which I’m super proud of. That’s great. But we need action on this. This has been decades.”

That plan, which was explained by Mayor Butch Berry at the past two council meetings, includes hiring a Fort Smith company to come in and survey the underground leaks.

“That’s the only way that I know how to find the leaks is to have a leak detection come in and find them because as you know, and I know, when you have a leak it doesn’t come to the surface in this town,” Berry said. “We’re trying to find various methods of finding those leaks. … And it’s going to cost us several thousand dollars and we’re going to be able to pay for it.

“Holiday Island went through the same process a while back and I don’t think they are any better off than we are.”

Three residents spoke during public comments, all telling council members they felt fixing the leaks should happen before raising rates.

“We’ve had about five businesses already close this year … downtown,” said resident Ferguson Stewart, who is also a member of the city’s planning commission. “And part of the thing is I’ve been interviewing the business owners and they’re saying they’re about 26 percent down compared to last year.

“So, I think we do need to look at the water rates, but I think we need to fix the leaks first. Right now is not a good time to reach into people’s pockets so I’m asking … tabling until maybe August so we know where we’re at a little closer.”

Council member Harry Meyer said the city efficiently fixes water leaks as they are discovered and something has to be done financially or the water department will be in trouble.

“We’re in a little town that has steep hills and lots of pressure on the water lines and the water lines break,” Meyer said. “We fix water leaks every day. … We need to meet the problem because the water department is going to run out of money and I don’t know where the money can come from since the water department has to be self-sustaining. That’s state law.”

Meyer agreed a study to find the leaks needs to take place but told council members that “any city will lose 25, 30 percent of the water,” but added even the cost to repair leaks has risen greatly along with water prices from Carroll-

“I know the cost of living for all of us here,” he said. “I’m on Social Security. I’m on a fixed income, too. I understand how it is. But, there’s nothing we can do about stopping inflation.”